Billionaire Patrice Motsepe’s Elandsfontein phosphate mine, a $160 million project owned by Kropz Plc, is at the centre of a fresh legal challenge. Motsepe’s African Rainbow Capital holds a 90% stake in the company, which has been embroiled in controversy since it acquired South Africa’s second-largest phosphate deposit in 2010. The World Wildlife Fund (WWF) has filed a lawsuit against South Africa’s Environment Minister, Dion George, after he dismissed appeals regarding an exemption granted to the mine.
Environmentalists have long raised concerns about the project, warning that it threatens the sensitive Langebaan Lagoon ecosystem, located just 60 miles north of Cape Town. The legal battle centres on an offset agreement requiring Kropz to purchase over 20,000 acres of land for donation to the West Coast National Park as compensation for environmental impacts. This proposal was invalidated by the provincial environmental office in 2021, but Minister George’s decision to uphold the exemption has reignited opposition. The WWF argues that the delays in implementing the offset requirements have caused harm to the environment and the public.
In response, Kropz issued a brief statement acknowledging the situation, stating that they would carefully consider their next steps. The legal proceedings are ongoing, with the WWF’s court documents, filed on March 13, highlighting the negative impact on the environment.
Meanwhile, Motsepe’s investment company, African Rainbow Capital Investments (ARCI), has announced its exit from the Johannesburg Stock Exchange (JSE). ARCI cited the persistent undervaluation of its shares, offering shareholders R9.75 ($0.54) per share, a 12.6% premium on the latest closing price, but a 22.8% discount on its net asset value. The company, which has stakes in TymeBank, Alexforbes, and wireless broadband start-up Rain, has faced a 40% discount on its shares in recent years. The delisting is expected to allow the company to return more value to its investors.
ARCI also revealed plans to relocate its headquarters from Mauritius to South Africa, citing tax inefficiencies and the underachievement of its original strategy of attracting international investment. Despite the initial optimism about Mauritius’s business-friendly environment, ARCI found that the strategy did not yield the expected results. However, the company reported some positive progress, including a 4.1% increase in its net asset value to R19.3 billion by December 2024. Over 99% of its portfolio is now focused on high-growth or mature investments.
In addition to his business ventures, Motsepe has been re-elected as president of the Confederation of African Football (CAF) for a second term, with his re-election confirmed at an extraordinary general assembly in Cairo, attended by FIFA president Gianni Infantino.
